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Lying on claims is stupid, expert argues

By Marianne Straker, Tue 27 May 2008 - Published in Home Insurance

Opting to tell lies on insurance claim forms is nothing but stupid, an expert has argued.

Consumers that opt to tell lies on an insurance claim are doing nothing but harming themselves and could be at risk of higher premiums, he suggests.

"If you do get found out then not only will you not get the claims processed but there is also a danger that your premiums may go up as a result of this," said head of personal finance at Fool.co.uk, David Kuo.

He added that nowadays insurance providers are "very shrewd" and can detect when someone is lying on a claims form.

A report from the Insurance Fraud Bureau recently noted that fraudulent claims cost the industry more than £1.5 billion per year - which adds around five per cent on to the average premium for car or home insurance.

Further to this, a study from the Association of British Insurers suggests that some 11 per cent of all claims include an element of opportunistic fraud.